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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Tai who wrote (10213)	12/28/1999 10:58:00 AM
From: Richard Tai	Read Replies (1) \| Respond to of 13953

jubak's comments: It looks like ETrade Group (EGRP) is going to get permission to buy Telebanc (TBFC) after all. On Dec. 20, the Office of Thrift Supervision, which regulates Telebanc's Telebank business, said that it has enough information to rule on the deal. In the past, that kind of announcement has preceded regulatory approval. While that would be a long-term positive for ETrade and its drive to become a financial services supermarket, in the short-term the much-improved odds on the deal have actually depressed ETrade's stock. The reason: Investors sold ETrade and bought Telebanc to take advantage of the 30% difference between the market value of Telebanc shares and the price ETrade has agreed to pay. (ETrade will pay 1.05 of its shares for each Telebanc share.) That 30% spread has now pretty much vanished, and I expect that official approval of the deal will give a boost to ETrade shares. I'm keeping ETrade in Jubak's Picks, but as of Dec. 28, I am stretching out my price target of $49 to June from the previous February.